(YoungBiz.com) - So you're thinking about starting
a business. But, as a budding teen entrepreneur, you're also
thinking there are more than a few cards stacked against you. You
don't have any start-up cash to speak of. You don't have a
storefront. And you're not old enough to sign the legal papers
required to open a business bank account.

Whoa there! Before you go any further, you might be surprised to
learn that, because you're a teen, you can turn those obstacles
into opportunities. Many teen 'treps succeed where their adult
counterparts falter. Check out the ways these 'treps played the
"youth card" in their favor.

Small
Beginnings
Adult entrepreneurs are more likely to jump into their newly
established businesses with both feet. In their enthusiasm, they
might sign for a sizeable bank loan, rent office space and buy some
expensive advertising to announce their business's grand
opening.

Might a teen do the same? Not likely. And not due to a lack of
enthusiasm, but because teens generally don't have the same
financial resources that adult entrepreneurs have. As a result,
their businesses often start off small with little overhead--which
means less risk. Consider the tote bag business called T-Bags that
Taneka, Takeshia, Tajuana and Tianda Reed (ages 20, 19, 18 and 17,
respectively) started in their hometown of Charlotte, North
Carolina. Instead of taking out a loan to open a store, the sisters
started their business by taking 30 of their specialty bags to a
three-day trade expo--and selling every single one the first
day.

Advertising? These successful sisters already knew that
word-of-mouth is not only free, but it's also the best form of
advertising. "We get advertising from some of our special
orders, by other people seeing our products and liking them,"
Takeshia explains. "When people see someone wearing our
products, they ask about them."

Pay as You
Grow
Most teen business owners operate strictly cash businesses, buying
additional equipment only when they've got the money in hand.
That strategy is often out of necessity rather than choice--teens
aren't likely to qualify for big loans or get approved for
credit cards. But this actually works in their favor.

That was the case when Chrissy Frentz started her Snowball City
snowball stand seven years ago out of her Laurel, Maryland, garage,
at age 14. She didn't have the cash--so she waited until she
saved enough to start her business. "I've always been a
big saver," says Frentz. "I was always cutting lawns,
baby-sitting and taking care of people's pets."

It's a strategy that pays off. Without a lot of bills, it
takes less for teen businesses to survive. If there is a downturn
in the economy, they just hunker down and ride it out.

Would you borrow money to start a business or use your own
savings? Read more about how Chrissy Frentz started her
Snowball City venture without a loan on YoungBiz.com.

Outside the Box

Daniel Anstandig's Internet radio station, Radio DAER, may
have started out small back in 1998, but it didn't stay that
way for long. With 1.2 million listeners every month, the
18-year-old broadcasting whiz from Beachwood, Ohio, is enjoying his
success. He's also learned that, when faced with a bump in the
road, creativity pays off.

As his business grew, Anstandig realized he needed professional
legal advice in order to protect it. He also knew attorney fees
could add up in a hurry. Faced with that obstacle, Anstandig combed
through the business contacts he had made. His legwork paid off
when he found an attorney willing to donate his services. "In
this situation, I was actually blessed with the age card,"
Anstandig reflects. "If I had started this business at age 30,
I don't think I would have been able to rally this kind of
support."

Anstandig's approach to his problem is typical of
'treps. Teenage business owners are less afraid of doing the
wrong thing than adult business owners, so they often think more
creatively. As a result, they sometimes solve business problems or
create products or systems that are very unique--thereby overcoming
obstacles in creative ways that adults might assume were the
"wrong" ways to do things.

The Bottom
Line
Many 'treps are able to weather the storms of business that
their adult counterparts cannot. Simply put, they face their
challenges head-on and dare to think of solutions outside the box.
Do you? Take the accompanying quiz and find out.

Are the Odds
in Your Favor?

Do you approach obstacles with
determination, or do you run away screaming at the slightest bump
in the road? Read the following statements, and rate yourself
between 1 and 4 based on the statement that is true for you. Then
total your points and see how likely you are to turn those
challenges into opportunities.

1 = Almost never true

2 = Sometimes true

3 = Usually true

4 = Almost always true

1. If I couldn't afford a storefront, I'd ask my parents
if I could run my business out of the garage or basement.

2. When I come up against a problem that doesn't seem to
have an immediate answer, I work on it until I think of a creative
solution.

3. I'd be more inclined to save up the money to start my
business than borrow it from someone.

4. In order to keep my business's costs down, I'd work
extra hours or ask a friend for help rather than hire
employees.

5. If I needed business or legal advice, I'd network with
everyone I knew and everyone my parents knew to try to find someone
who was willing to help me at no charge.

6. Rather than buy a piece of equipment on credit, I'd find
a way to borrow or rent it until my business could afford to pay
cash.

7. I don't have a fear of failure. To me, an obstacle only
means that I have to find a different way to go.

8. If my business started losing more money than it was making,
rather than having a panic attack, I'd sit down and calmly
figure out what to do.

9. I think it's an advantage to start a business as a teen
because I don't have adult responsibilities and bills to worry
about at this time in my life.

10. Even if it takes longer, starting small and building a
business slowly more often leads to success than the
"full-speed-ahead" approach.

Scoring31-40 When life gives you lemons, there's no
question--you make lemonade.

21-30 Obstacles may cause temporary setbacks, but you
recover and find solutions.

11-20 You tend to let your fears take over and block your
progress. Keep in mind that the best way to overcome your fears is
to face them head-on.

1-10 When you see an obstacle headed your way, you
freeze--and so does your determination and creativity. Spend some
time with successful entrepreneurs who are experienced at
overcoming challenges.